Question

mpt in Progress On December 1, Marigold Corp. has three DVD players left in stock. All are identical, all are priced to sell at $197. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $121. Another, with serial #1045, was purchased on November 1 for $93. The last player, serial #1056, was purchased on November 30 for $88. Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Marigold Corp. year-end. $ Cost of goods sold eTextbook and Media If Marigold Corp. used the specific identification method instead of the FIFO method, how might it alter its earnings by "selectively choosing" which particular players to sell to the two customers? What would Marigold's cost of goods sold be if the company wished to minimize earnings? Maximize earnings? if it wished to minimize the earnings. Cost of goods sold would be $ if it wished to maximize the earnings. Cost of goods sold would be $ eTextbook and Media

Answer 1

FIFO method states that goods purchased first are sold first

Hence, cost of goods sold = 121+93 =$214

If wishes to minimize earning, first two players will be chosen

Cost of goods sold = 121+93 =$214

If maximise, cost of goods sold = 93+88 =$181